In December 2019, a novel strain of coronavirus (“COVID-19”) was reported to have surfaced in Wuhan, China and subsequently spread to other countries, including Europe and the United States, and was declared a pandemic by the World Health Organization. The Company’s financial results for the three months ended March 31, 2023 and 2022 were not significantly impacted by COVID-19, however, the Company cannot at this time predict the specific extent, duration, or full impact that the COVID-19 pandemic may have on its financial condition, operations, and business plans for 2023, including the timing and enrollment of patients in its planned clinical trials and other expected milestones of its product candidate.

In February 2020, the Company entered into a seven-year agreement to occupy 6,647 square feet of office space in South San Francisco, California. The lease commenced on July 10, 2020 when the Company took occupancy of the leased space and the lease was determined to be operating classified. Under the agreement, the Company is required to make approximately $2,300 in total minimum payments during the term. The Company is also required to pay its proportionate share of building operating and tax costs after the first year under lease which are not included in the measurement of the lease and treated as variable lease cost and expensed when incurred.

As of March 31, 2023, maturities of the Company’s operating lease liability was as follows:


2023 (remaining)		242
2024		331
2025		341
2026		351
2027		208
Total future minimum lease payments		1,473
Less imputed interest		(218	)
Present value of operating lease liabilities	$	1,255

As of March 31, 2023, the total lease liability was $1,255, of which $1,017 was noncurrent and $238 was short-term and classified within “Accrued expenses and other current liabilities” on the condensed consolidated balance sheet.

For the three months ended March 31, 2023 and 2022, the components of operating lease cost were as follows:


		Three Months Ended March 31,
			2023				2022
Lease cost:	Statement of Operations Classification:
Operating lease cost	General and administrative expense	$		81		$		81
Short-term lease cost	General and administrative expense			53				29
Variable operating lease cost	General and administrative expense			8				12
Total operating lease cost		$		142		$		122

Other information:
Cash paid for amounts included in the measurement of operating lease liability		$		79		$		77
Weighted average remaining lease term				4.3				5.3
Weighted average discount rate				7.6	%			7.6	%

The Company has entered into agreements with contract research organizations and contract manufacturing organizations to provide services in connection with its nonclinical studies and clinical trials and to manufacture clinical development materials. As of March 31, 2023, the Company had non-cancelable purchase and other commitments under these agreements totaling $14,318.

In the ordinary course of business, the Company may provide indemnification of varying scope and terms to vendors, lessors, business partners and other parties with respect to certain matters including, but not limited to, losses arising out of breach of such agreements or from intellectual property infringement claims made by third parties. In addition, the Company has entered into indemnification agreements with members of its board of directors and its executive officers that will require the Company, among other things, to indemnify them against certain liabilities that may arise by reason of their status or service as directors or officers. The maximum potential amount of future payments the Company could be required to make under these indemnification agreements is, in many cases, unlimited. To date, the Company has not incurred any material costs as a result of such indemnifications. The Company is not currently aware of any indemnification claims and has not accrued any liabilities related to such obligations in its condensed consolidated financial statements as of March 31, 2023.

The Company is not a party to any litigation and does not have contingency reserves established for any litigation liabilities. At each reporting date, the Company evaluates whether or not a potential loss amount or a potential range of loss is probable and reasonably estimable under the provisions of the authoritative guidance that addresses accounting for contingencies. The Company expenses as incurred the costs related to such legal proceedings.